Hong Kong stocks finished flat in green territory on Wednesday, as traders lowered their expectations of a local rate cut in the coming months.
The Hang Seng Index inched 0.02%, or 2.87 points, to finish the day's trade at 16,251.84. The Hang Seng China Enterprises Index (HSCEI) moved 0.10%, or 5.91 points, to 5,749.69.
This cautious optimism stemmed from signals from the US Federal Reserve, which heavily influences Hong Kong's monetary policy. Fed Chair Jerome Powell, during an event in Washington, indicated a wait-and-see approach, suggesting it might "take longer" for the US central bank to feel confident about curbing inflation.
"It is appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us," Powell was quoted by Barrons as saying at an event in Washington.
Analysts at ANZ Research said, "The Fed can afford to be patient, the economy is doing well so there is no need to rush into cutting interest rates as activity levels and the labor market are nowhere near recessionary levels."
In corporate news, Galaxy Entertainment Group (HKG:2382) shed almost 7% even after the casino operator recently reported a 211% year-over-year revenue growth for 2023 to $35.7 billion.